This is a deep dive into the "Financial Engineering" behind these Bitcoin treasury companies.
The research confirms your suspicion: Retail investors almost universally lost money in these trades unless they were lucky enough to buy before the announcements and sell immediately into the hype.
The winners were the insiders, early financiers, and advisory partners (often famous Bitcoiners) who utilized specific financial instruments to "front-run" the public.
1. The Mechanics of the "Front-Run"
These companies did not just buy Bitcoin; they used Structured Finance to ensure insiders entered at a valuation far lower than the public.
A. H100 Group (Sweden): The "Convertible Note" Arb
The Mechanism: Before the "Bitcoin Pivot" hype, H100 issued Convertible Loans to insiders (including entities linked to Adam Back).
1 The Front-Run:
Insider Price: The convertible notes allowed these lenders to convert their debt into shares at prices as low as SEK 1.75 - SEK 5.00.
2 Public Price: When the news broke ("Adam Back invests!"), retail rushed in, driving the stock to SEK 16.00+.
The Exit: Insiders could convert their debt into shares at the low fixed price and sell into the liquidity provided by retail investors buying at the top.
Retail Outcome: The stock has since collapsed to ~SEK 1.82. If you bought the "Adam Back Hype," you are down ~89%, while the insiders who converted at SEK 1.75 are still technically "in profit" or broke even.
B. KindlyMD (NAKA): The "Merger Pump"
The Mechanism: This was a Reverse Merger (KindlyMD merging with Nakamoto Holdings).3
The Front-Run: Before the public could trade the new "Bitcoin Super Stock," early investors and PIPE (Private Investment in Public Equity) participants funded the deal.
The Trap: The company raised money at $1.12 and $5.00 per share from private investors.
The Dump: When the "Nakamoto" ticker went live, the hype drove the price up. However, execution failures and massive dilution followed.
Retail Outcome: The stock is now trading at $0.37, down 99%. Retail investors who bought the "Nakamoto" brand story were effectively buying the exit liquidity for the private backers.
C. LQWD Technologies: The "Dilution Machine"
The Mechanism: LQWD operates as a "dilution engine."4 They constantly issue new shares to fund operations and buy small amounts of Bitcoin.
The Front-Run:
Insider Selling: In late 2025, while the company promoted its "Lightning Network Growth" story, directors and officers were selling shares (approx. 226k shares sold).
Dilution: The share count increased by ~57% in just one year.
Retail Outcome: You didn't just lose money on the price drop; you lost ownership percentage. For every 1 Bitcoin the company held per share when you bought, you now own significantly less of that Bitcoin due to the flood of new shares. The stock is down 91% from its highs.
2. Did Any Retail Investors Make Money?
Technically, yes—but only Gamblers, not Investors.
The "Luck" Window:
Smarter Web Company (SWC): There was a 2-week window in May 2025 where the stock went parabolic (up 20,000%). If a retail trader bought Day 1 and sold Day 14, they made life-changing money.
The Reality: Most retail investors buy after seeing the 20,000% gain, thinking "it's the next MicroStrategy." Those investors are now down 94%.
The "Bagholder" Census:
Analysis of forum sentiment and volume profiles shows the vast majority of retail volume occurred at the tops (the "Distribution" phase), meaning most retail investors are currently holding heavy losses.
3. The "Insiders" Who Won
While retail bled, these groups profited:
The "Advisors": Firms and famous Bitcoiners who received "Advisory Shares" or warrants for lending their name to the project. They paid $0.00 or near-zero for their equity.
The Deal Structurers: The financiers who arranged the "Convertible Notes." They earned interest on the debt and then converted to equity at a discount.
The Pivot CEOs: Executives of failing companies (like a struggling health company or web design firm) who pivoted to Bitcoin. This pivot allowed them to raise millions in fresh capital from retail to pay their own salaries for another 1-2 years.
Verdict
This was a Transfer of Wealth.
From: Retail investors chasing the "Next MicroStrategy" narrative.
To: Failing small-cap executives and savvy financiers who structured the deals.
If you are looking for a "Bitcoin Treasury" investment, the data suggests you should ignore the small-cap imitators entirely. They are structurally designed to dilute you.
Disclaimer: This post is for informational purposes only and is not financial advice, investment advice, or a recommendation to buy/sell any securities. All data is based on publicly available market information as of December 19, 2025, and stock prices can be volatile. Past performance is no guarantee of future results. Always conduct your own research and consult qualified professionals before making investment decisions. I am not responsible for any trading losses. #DYOR #NFA